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A warm welcome to the Community, userxmastreesbeeskne.
There are two options to reduce the customer's negative balance. You can either issue a refund or show there is a Sale to which it is applied.
Here's how to show a sale:
To know more about this process and how overpayment works in QuickBooks Online, check out this article: Handle a customer credit or overpayment in QuickBooks Online.
Additionally, you can visit this write-up: Clear up customers with zero net balances in the Accounts Receivable Aging report. It contains more details on how to deal with customers' zero net balances.
If you need more help with customers' balances in QuickBooks Online, please let me know. I'd be glad to assist. Have a good one.